Choosing the best business bank accounts is a critical decision for any entrepreneur or small business owner in the UK. Whether you’re a startup, sole trader, freelancer, or growing SME, having a dedicated business account helps manage cash flow, stay legally compliant, and build a professional image.
With so many providers offering a variety of features, pricing models, and digital tools, this guide breaks down the top best business bank accounts in the UK for 2024/25 to help you pick the right one based on your needs.
Why You Need a Business Bank Account
If you’re operating as a limited company, having a separate business bank account is a legal requirement. Sole traders are not legally obligated, but using a dedicated account helps:
- Separate personal and business finances
- Simplify accounting and tax filing
- Build credibility with clients and suppliers
- Access business credit, loans, and overdrafts
- Get paid faster via invoices and direct debits
Key Features to Look For
When comparing business accounts, consider:
- Monthly fees
- Transaction charges
- Customer service quality
- Online/mobile banking
- Integration with accounting tools
- Overdraft and credit options
- Cash and cheque deposit capabilities
Best Business Bank Accounts in the UK (2024)
Here’s a detailed comparison of the top providers:
🏆 1. Starling Bank Business Account – Best All-Rounder
Monthly Fee: Free
Best For: Startups, sole traders, and SMEs
FSCS Protected: Yes
Key Features:
- Free UK bank transfers
- Instant payment notifications
- Integrates with Xero, QuickBooks, FreeAgent
- In-app invoicing and receipt scanning
- 24/7 UK-based customer support
- Optional business overdraft
Pros:
- No monthly or transaction fees
- Excellent mobile app
- Award-winning customer satisfaction
Cons:
- No branch access (app-based only)
- Limited multi-user access (for teams)
🥈 2. Tide Business Account – Best for Freelancers and Startups
Monthly Fee: Free basic plan, £9.99+ for premium
Best For: Freelancers, consultants, micro-businesses
FSCS Protected: Yes (via ClearBank)
Key Features:
- Open account in minutes via app
- Expense categorisation
- Invoice creation & payment reminders
- Multiple accounts (pots) for budgeting
- Integrated with accounting software
Pros:
- Fast, simple setup
- Free ATM withdrawals (limits apply)
- Paid plans offer priority support and credit options
Cons:
- Fees for cash/cheque deposits via Post Office
- Basic plan has limited features
🥉 3. Monzo Business Account – Best for Digital Features
Monthly Fee: Free for Lite, £5/month for Pro
Best For: Tech-savvy users who want advanced tools
FSCS Protected: Yes
Key Features:
- Tax pots to set aside VAT
- Integration with accounting platforms
- Multi-user access for teams
- Real-time notifications and analytics
- Mobile and web dashboard
Pros:
- Beautiful user interface
- Great for budgeting and forecasting
- Free UK bank transfers
Cons:
- No international banking features
- Limited cash deposit options
💼 4. Barclays Business Account – Best for Traditional Banking
Monthly Fee: Free for 12 months (then £8/month approx.)
Best For: Established businesses needing full services
FSCS Protected: Yes
Key Features:
- Access to over 1,500 physical branches
- Business debit card and cheque book
- Overdrafts, loans, and merchant services
- Foreign exchange and international payments
- Relationship manager for larger SMEs
Pros:
- Well-established brand
- In-branch banking services
- Business credit card and finance options
Cons:
- Monthly fee after introductory period
- Slower setup process compared to digital banks
📊 5. Revolut Business Account – Best for International Payments
Monthly Fee: Free basic plan; £25+/month for higher tiers
Best For: Businesses with global clients or suppliers
FSCS Protected: No (uses safeguarding accounts)
Key Features:
- Hold and exchange 30+ currencies
- Real-time exchange rates
- API access for automation
- Expense management
- Virtual and physical cards
Pros:
- Low-cost international transfers
- Currency accounts in GBP, EUR, USD, and more
- Supports remote global teams
Cons:
- Not FSCS protected (regulated but no compensation scheme)
- Complex pricing tiers
Comparison Table: Best Business Bank Accounts UK
| Bank | Monthly Fee | FSCS Protected | Best For | Key Strength |
| Starling | £0 | ✅ Yes | Most SMEs | All-round performance |
| Tide | £0 / £9.99+ | ✅ Yes | Freelancers/startups | Fast setup and invoicing tools |
| Monzo | £0 / £5 | ✅ Yes | Digital-first users | Real-time finance insights |
| Barclays | Free 12 mo | ✅ Yes | Traditional banking | Physical branches and loans |
| Revolut | £0 / £25+ | ❌ No | Global transactions | Multi-currency and low FX fees |
What About High Street vs Challenger Banks?
- High Street Banks (Barclays, NatWest, HSBC):
- Offer face-to-face service and long-term business relationships.
- Better for businesses needing loans, trade finance, and branch access.
- Offer face-to-face service and long-term business relationships.
- Challenger/Digital Banks (Starling, Tide, Monzo):
- Provide fast signups, modern tools, low fees.
- Ideal for startups, freelancers, and tech-driven SMEs.
- Provide fast signups, modern tools, low fees.
What to Avoid in a Business Account
- Hidden fees – Especially for cash deposits, international transfers, or overdraft use.
- Inflexible contracts – Avoid long lock-in periods.
- Lack of support – Ensure they offer reliable customer service when issues arise.
- No integrations – If you use accounting tools, ensure compatibility.
Business Bank Account for Sole Traders
If you’re self-employed or freelancing, Tide, Starling, and Monzo are excellent options:
- Easy to open and manage
- No minimum income or turnover requirements
- Great tools for tax prep and expense tracking
Business Bank Account for Limited Companies
Limited companies often need more robust services:
- Choose banks like Starling, Barclays, or Revolut depending on your needs
- Look for credit lines, invoice finance, or payroll integration
- Ensure you can provide incorporation documents and ID during setup
How to Open a Business Bank Account in the UK
Required Documents:
- Proof of identity (passport or driving license)
- Proof of address (utility bill, bank statement)
- Company registration number (for limited companies)
- Business details (nature, turnover, etc.)
Process:
- Online: Digital banks allow account opening in minutes via app
- In-branch: Traditional banks may take a few days or require an appointment
Conclusion
The best business bank accounts for your company depends on your size, financial needs, and how you operate. Digital-first businesses and freelancers will thrive with Starling, Tide, or Monzo, thanks to their low fees and easy-to-use apps. Larger or established businesses might prefer Barclays or Revolut for their advanced services and global capabilities.
Before committing, compare all options, read the fine print, and assess your future needs. A good business account isn’t just about storing money — it’s about simplifying growth, reducing admin, and helping your business thrive.
